FSC flags concerns with APRA data accuracy
The Financial Services Council has concerns about the accuracy of Australian Prudential Regulation Authority (APRA) data used for the performance test after the regulator reissued its MySuper heatmaps.
The 2022 MySuper heatmaps were re-issued by APRA today (24 February) after concerns about international index data for listed international equities, a staple of MySuper funds' allocations.
While it did not result in any changes to the funds identified as poor performance or significantly poor performance, the FSC was concerned about the quality of APRA’s data, particularly if the test was to be extended to Choice products.
The extension to Choice products had already been delayed once due to data inaccuracies.
FSC chief executive, Blake Briggs, said: “Today's disclosure that the heatmaps and performance assessment for MySuper products was incorrectly applied is concerning as it has the potential to harm consumers and distort competitive markets.
“The Government must ensure that super performance tests are run on accurate data as consumer harm and tax consequences could result from incorrect advice being given to super members.
“This development follows the deferral in the Choice heatmap at the end of last year because APRA was also unable to resolve inaccuracies with data collected under their new reporting requirements.
“The Government will need to tread carefully in resolving issues with data accuracies as they look to extend the MySuper performance test to Trustee Directed Products as the performance assessment reported this year would be based on unaudited data.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Former ASIC and APRA leaders launch a conflict-free model to meet rising prudential expectations.
ASFA has launched a central online hub to help super funds, employers and service providers prepare for Payday Super reforms.
The Super Members Council is calling on the government and regulators to impose additional safeguards to prevent superannuation switching harm and has put forward multiple suggestions for improvements.
The Assistant Treasurer has reaffirmed the government’s commitment to strengthening retirement outcomes, consumer protections and cyber resilience in superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
